Greece Has 3 Days To Convince Authorities: EU Officials

Greece has only three days to prove the Europe and International Monetary fund that it can fulfill the conditions that are mandatory to get the next tranche of aid, according to four officials of the Euro Zone.

Lenders not happy with Greece

According to a senior euro zone official, the lenders are not satisfied with the way Greece is managing things. The country failed to reform its public sector and there are chances that an inspection visit may also be cancelled.

Greece is required to redeem 2.2 billion euros of bonds in August and needs to hold conversations in order to complete the condition. On failure to redeem the bonds, International Monetary fund will not take part in the 240 billion euro bailout to prevent its rules from being violated.

Other countries also struggling

There will be more possibility that the Euro Zone crisis may loosen in the time period when other countries near to Europe are in pressure, which authorities have been trying to avoid over the past nine months.

Vitor Gaspar, finance minister of Portugal who was behind the austerity drive under an EU/IMF bailout stepped down from his position, which is a disappointment to the country’s proposed exit from an EU-IMF rescue program.

Italy is also under pressure from a negative political environment, when a meeting was held by Prime Minister Enrico Letta where the coalition partner gave warnings to withdraw.

Greece missing deadline

Conversation between Athens and its lenders to get 8.1 billion euros of rescue loans, started on Monday after the talks were suspended for a couple of weeks when the government was on the verge of falling due to problems at state broadcaster ERT.

“All agreed that Greece has to deliver (pledges) before the Eurogroup on Monday. That’s why they must present again on Friday,” a second source told Reuters.

Finance minister from the euro zone are scheduled to meet on July 8 to discuss the Greece situation.

One of the Greek Officials said that conciliation is not an easy process and that they are trying to conclude issues as fast as they can.

Senior euro zone official said that the IMF, the euro zone and the European Central Bank could not complete their review in July and can probably postpone the visit up to September. If the talks between EU-IMF-ECB “troika” and government ministers in Athens are not concluded by the middle of the month, the country may miss the installment.

Athens could not complete the transfer of 12,500 state workers into a “mobility scheme” under which either the workers will be transferred or dismissed within a year.

The beleaguered government denied imposing any further austerity measures on the population that is under the recession for a sixth year.